Shares of Canara Bank Ltd. (NSE: CANBK) rose by ₹1.44 (1.55%) in early trade on April 16, 2025, touching ₹94.13. The public sector lender attracted interest as banking stocks saw renewed buying, backed by strong earnings prospects and attractive dividend yields.
Key Trading Highlights:
- Previous Close: ₹92.69
- Opening Price: ₹92.97
- Day’s High: ₹94.50
- Day’s Low: ₹92.50
- Current Price (LTP): ₹94.13
- Market Cap: ₹85,380 Cr
- P/E Ratio: 5.20
- Dividend Yield: 3.42%
- 52-Week High: ₹128.90
- 52-Week Low: ₹78.60
What’s Driving the Rally in Canara Bank?
As market sentiment improves, PSU banks like Canara are seeing inflows due to their value-oriented nature and steady financials. The bank's strong dividend yield of 3.42% adds to its appeal among long-term investors. With a P/E of just 5.20, the stock is still considered undervalued compared to private sector peers, making it a compelling choice.
Technical View: Consolidation with a Bullish Tilt
Canara Bank is now holding above ₹94, with the next major resistance seen around ₹96. The intraday support rests at ₹92.50, a level that has held firm today. If the stock sustains above ₹94.50 in the next session, it could trigger a move toward ₹98–₹100 in the near term.
Support and Resistance Zones:
- Immediate Support: ₹92.50
- Key Resistance: ₹94.50, followed by ₹96.80
If momentum sustains, a breakout could take the stock toward its 52-week high region in coming sessions. Today’s 1.55% gain highlights the stock’s bullish momentum as investor appetite for PSU banking counters returns. Canara Bank continues to offer a combination of high dividend yield, low valuation, and strong balance sheet, making it a solid bet in the Indian banking space. Investors may look for fresh accumulation on dips toward ₹92, with the potential to ride a short-term rally toward ₹100.
Canara Bank shares have advanced for the third consecutive session on April 16, 2025, continuing their upward trend as investor sentiment grows on the possibility of another interest rate cut by the Reserve Bank of India (RBI). This follows a significant decline in India's retail inflation to a multi-year low. The RBI reduced the key repo rate to 6% from 6.5%, making two successive cuts of 25 basis points in its latest monetary policy sessions.
Additionally, the positive outlook for the banking stock was bolstered by recent news that prominent investor Rekha Jhunjhunwala included Canara Bank in her portfolio during the quarter that ended on March 31, 2025, acquiring a 1.46% stake in the public sector bank. She had previously sold this stock in the December quarter before deciding to buy it back in the most recent quarter. As of September 30, 2024, her ownership in the company was recorded at 1.42%.
The Nifty Bank index climbed 0.70%, reaching an intraday peak of 52,749 points. Individual stocks like Federal Bank, Bank of Baroda, Canara Bank, and Punjab National Bank increased by as much as 2%. Major bank stocks such as Kotak Mahindra Bank, Axis Bank, IndusInd Bank, and State Bank of India also saw gains exceeding 0.5% through the session so far.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, highlighted that PSU banks are in strong buzz today and Canara Bank shares are showing great strength. Anshul Jain, Head of Research at Lakshmishree Investment and Securities, stated that Canara Bank shares posted eight consecutive down months before triggering a dead cat bounce in March, with follow-through seen in April. On the daily chart, the stock has reclaimed its 10, 20, and 50-day moving averages, now acting as key supports.
“Any pullback towards the ₹90 zone offers a solid buy-on-dips opportunity. The initial upside target is ₹105, which marks the 50% retracement of the entire decline. Momentum looks favorable for a short-term bullish move,” added Jain.
Further, Riyank Arora, Technical Analyst at Mehta Equities Ltd, explained that Canara Bank shares are showing a strong and positive chart pattern, suggesting that the stock is in an uptrend. The RSI on the daily chart is at 61, indicating healthy momentum and room for more upside before getting overbought.
"The stock is trading above key support levels and is holding well above important moving averages, adding to the bullish sentiment. If it manages to break above the ₹96 level, we could see a further rally towards ₹100–₹104 in the short term. Overall, the trend looks positive, and it may be a good idea to consider buying on dips for potential gains," Arora noted.
Canara Bank shares today opened at ₹93.46 apiece on the BSE, touching an intraday high of ₹94.50 and an intraday low of ₹92.63 per share. According to Trendlyne data, the stock price decreased by 20.73% and lagged behind its sector by 33.36% over the last year. However, Canara Bank shares have gained about 5% in the three-straight sessions.
The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. Investors are advised to check with certified experts before making any investment decision.
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